Why the gold price could soar in a few short years
Rob McEwen, the CEO of the world’s largest gold company, GoldCorp, told CNBC
in an interview last month that he’s “a long-term believer in gold
”. He sees the price hitting $5,000 an ounce.
Mr McEwen expects gold to soar to $5,000 within the next three to four years, Peter Krauth in Money Morning US
Many gold critics claim that the bull run in gold is over. Yet others believe the price is just consolidating after its mighty run a couple of years ago. And is preparing for far more.
If you look back, that’s what happened before. In the 1970s, gold corrected from $200 to $100 an ounce. Then it sped from $37 to peak at $800 an ounce. That’s a rise of over 2,000%!
There are a few factors that should help the gold price rise to $5,000 and beyond…
The factors that could push the price of gold through the roof
As the price of gold remains under pressure, gold producers will continue to put mines onto care and maintenance programmes. This will put strain on supply.
The number of new gold discoveries is shrinking. This is in spite of a huge amount of money being put into exploration since the 2001 gold bull run.
Gold producers are favouring higher grade ores over lower grade ones to remain profitable.
Over the past few years, central banks are buying far more gold than they’re selling.
The gold price could rise on geopolitical risks, a currency crisis, an inflation crisis or a similar market shock.
The fundamentals behind a bull run in the price of gold are strong. And gold could well start to scale higher over the next few years.
So there you have it, why gold could hit $5,000 an ounce by 2017.
*********** New release ************
Why China is about to trigger a new iron ore boom
And the one South African stock set to lead the comeback
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